Union Budget 2023-24: Marching ahead on a sustainable growth path

Continuing on the path of fiscal consolidation, the Budget has proposed effective measures for economic growth with enhanced capital outlay and financial prudence. Honourable Finance Minister Nirmala Sitharaman stuck to a pragmatic stand to keep the fiscal deficit in check at 5.9 per cent of the GDP.

The first Budget of the Amrit Kaal looked modern with a push to urbanisation, promising inclusive growth across the regions of the country and sections of the society, and extending due consideration to agriculture. The Budget promised futuristic measures with ample impetus to Artificial Intelligence, start-ups, skilling programmes, technology, knowledge society, digital payments and new labs for 5G services. While putting the economy on the right track towards India@100, sustainable and green growth efforts were given priority.

The biggest push came for the infrastructure sector, with a more than expected – i.e. 33 per cent – hike in capex that should boost private investment and spur employment generation. A steep increase in the outlay to Rs 10 lakh crore would cause resultant waves across the sectors and drive the expected economic growth at 7 per cent. The sweeteners that came in personal income tax structure should further contribute to overall growth. 

The Budget also underlined the quality of expenditure. Gross borrowing figures are pegged at Rs 15.4 trillion with a net borrowing amounting to Rs 12.3 trillion, which seems achievable. The introduction of Mahila Samman Savings Certificate at 7.5 per cent is attractive. The Budget also focused on ensuring that the momentum for the transition to green energy is continued by adhering to achieving its target of meeting 5MMT (for green hydrogen) by 2030. In addition to this, the focus on promoting balanced use of fertilisers/use of alternatives sends a clear message of the government’s commitment towards sustainable growth.

The Budget also attempted to utilise the resources (large labour force) through the introduction of various skill development and educational programmes. Additionally, scrapping 39,000 compliance requirements and the decriminalisation of 3,400 laws will go a long way to further enhance the ease of doing business.

Overall, based on the framework of inclusive development and infrastructure growth, the Budget has laid the roadmap for sustainable long-term economic growth and job creation.

The writer is Non-executive Vice Chairman, JM Financial Limited